U.S. and Hong Kong (1997)

S.1164

China Policy Act of 1997 (Introduced in Senate)

S 1164 IS

105th CONGRESS

1st Session

S. 1164

To state a policy of the United States that engages the People's Republic of China in areas of mutual interest, promotes human rights, religious freedom, and democracy in China, and enhances the national security interests of the United States with respect to China, and for other purposes.

IN THE SENATE OF THE UNITED STATES

September 11, 1997

Mr. ABRAHAM (for himself, Mr. FEINGOLD, Mr. HUTCHINSON, Mr. COVERDELL, Mr. DEWINE, Mr. ASHCROFT, Mr. BROWNBACK, Mr. MACK, and Mr. HELMS) introduced the following bill; which was read twice and referred to the Committee on Foreign Relations

A BILL

To state a policy of the United States that engages the People's Republic of China in areas of mutual interest, promotes human rights, religious freedom, and democracy in China, and enhances the national security interests of the United States with respect to China, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE- This Act may be cited as the 'China Policy Act of 1997'.

(b) TABLE OF CONTENTS- The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Declaration of policy.

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TITLE II--HUMAN RIGHTS, RELIGIOUS FREEDOM, AND DEMOCRACY IN CHINA

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(a) FINDINGS- Congress makes the following findings:

(1) The People's Republic of China resumed sovereignty over Hong Kong on July 1, 1997.

(2) In the Joint Declaration, a legally binding document in all its parts and the highest form of commitment between sovereign states, the People's Republic of China pledged that after its resumption of sovereignty over Hong Kong '[t]he current social and economic systems in Hong Kong will remain unchanged, and so will the life-style. Rights and freedoms, including those of the person, of speech, of the press, of association, of travel, of movement, of correspondence, of strike, of choice of occupation, of academic research and religious belief will be ensured by law in the Hong Kong Special Administrative Region'.

(3) The People's Republic of China further pledged in the Joint Declaration that the policies of the '... Joint Declaration will be stipulated in a Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, by the National People's Congress of the People's Republic of China, and they will remain unchanged for 50 years'.

(4) The Basic Law prescribes the systems to be practiced in the Hong Kong Special Administrative Region after the resumption of sovereignty over Hong Kong by the People's Republic of China.

(5) According to Article 2 of the Basic Law: 'The National People's Congress authorizes the Hong Kong Special Administrative Region to exercise a high degree of autonomy and enjoy executive, legislative and independent judicial power, including that of final adjudication'.

(6) According to Article 5 of the Basic Law: 'The socialist system and policies (of the People's Republic of China) shall not be practiced in the Hong Kong Special Administrative Region, and the previous capitalist system and way of life shall remain unchanged for 50 years'.

(7) According to Article 27 of the Basic Law: 'Hong Kong residents shall have freedom of speech, of the press and publication; freedom of association, of assembly, of procession and of demonstration; and the right and freedom to form and join trade unions, and to strike'.

(8) According to Article 32 of the Basic Law: 'Hong Kong residents shall have freedom of religious belief and freedom to preach and to conduct and participate in religious activities in public'.

(9) According to Article 34 of the Basic Law: 'Hong Kong residents shall have freedom to engage in academic research, literary and artistic creation, and other cultural activities'.

(10) According to Article 39 of the Basic Law: 'The provisions of the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and international labour conventions as applied to Hong Kong shall remain in force and shall be implemented through the laws of the Hong Kong Special Administrative Region'.

(11) President Jiang Zemin of the People's Republic of China, in his statement of July 1, 1997, at the ceremony in Hong Kong marking the establishment of the Hong Kong Special Administrative Region, said that '... Hong Kong will enjoy a high degree of autonomy as provided for by the Basic Law, which includes the executive, legislative and independent judicial power, including that of final adjudication'.

(12) President Jiang further said that the Hong Kong Special Administrative Region has the 'ultimate aim of electing the Chief Executive and the Legislative Council by universal suffrage'.

(13) President Jiang further said that '[n]o central department or locality (of the People's Republic of China) may or will be allowed to interfere in the affairs which, under the Basic Law, should be administered by the Hong Kong Special Administrative Region on its own'.

(14) President Jiang further said that 'the provisions of the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and international covenants as applied to Hong Kong shall remain in force to be implemented through the laws of Hong Kong's regional legislation'.

(15) President Jiang further said that adherence to these principles 'serves Hong Kong, serves the (People's Republic of China) and serves the entire nation as well. Therefore there is no reason whatsoever to change them. Here I want to reaffirm that 'one country, two systems, Hong Kong administering Hong Kong' and 'a high degree of autonomy' will remain unchanged for 50 years'.

(16) President Jiang, in another statement of July 1, 1997, at a rally in Beijing marking the establishment of the Hong Kong Special Administrative Region, said that the People's Republic of China 'will unswervingly carry out the principles of 'one country, two systems', 'Hong Kong people administering Hong Kong' and 'high degree of autonomy', and make sure that the previous socio-economic system and way of life of Hong Kong remain unchanged and that laws previously in force will remain basically unchanged. We will firmly support the Hong Kong SAR in its exercise of the functions and powers bestowed on it by the Basic Law and the Hong Kong SAR Government in its administration in accordance with law.'.

(b) SENSE OF CONGRESS- It is the sense of Congress that--

(1) the statements of President Jiang Zemin of the People's Republic of China constitute a welcome reaffirmation of the obligations of the People's Republic of China under the Joint Declaration to ensure that Hong Kong remains autonomous, the human rights of the people of Hong Kong remain protected, and the government of the Hong Kong Special Administrative Region is elected democratically; and

(2) the fulfillment by the People's Republic of China of the obligations under the terms of the Joint Declaration and the Basic Law constitutes a crucial test of Beijing's ability to play a responsible global role.

(c) DEFINITIONS- In this section:

(1) BASIC LAW- The term 'Basic Law' means the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China, as adopted on April 4, 1990, by the Seventh National People's Congress of the People's Republic of China.

(2) JOINT DECLARATION- The term 'Joint Declaration' means the Joint Declaration of the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the People's Republic of China on the Question of Hong Kong, done at Beijing on December 19, 1984.

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TITLE III--NATIONAL SECURITY MATTERS

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SEC. 305. FINDINGS ON THE INCONSISTENT APPLICATION OF UNITED STATES EXPORT CONTROL LAWS TO THE PEOPLE'S REPUBLIC OF CHINA AND HONG KONG.

Congress makes the following findings regarding the inconsistent application of United States export control laws to the People's Republic of China and Hong Kong:

(1) While Hong Kong was sovereign territory of the United Kingdom, United States control of United States exports to Hong Kong of items listed on the United States Munitions List and the Commerce Control List was considerably more lax than United States control of exports of such items to the People's Republic of China.

(2) On June 19, 1997, at a time when Hong Kong was still territory of the United Kingdom, the Department of Commerce discovered that a supercomputer exported to a Hong Kong based company without the need of an export license because it was being exported to Hong Kong was reexported to a defense research institute in Changsha, People's Republic of China.

(3) A Federal grand jury is currently investigating the 1995 diversion by the Government of the People's Republic of China to military aviation production of aircraft machining equipment that was originally exported from the United States for civilian end-use.

(4) The People's Republic of China is the only country which does not allow United States officials to investigate the final end-use of exported technology and recently refused United States requests to examine the location of the supercomputer diverted from Hong Kong.

(5) The continuation of this inconsistent export control regime without specific assurances and verification measures to prevent unauthorized reexport from Hong Kong, or diversion to military end-use, provides the Government of the People's Republic of China with the means to circumvent United States export controls and gain access to critical technology necessary both for defense modernization and the proliferation of ballistic missiles and weapons of mass destruction.

(6) This inaction forces Congress to take affirmative action in the bilateral relations between the People's Republic of China and the United States in order to respond sufficiently to these violations of United States law.

SEC. 306. EXPORTS OF SUPERCOMPUTERS TO THE PEOPLE'S REPUBLIC OF CHINA.

(a) PRIOR APPROVAL OF EXPORTS AND REEXPORTS- The President shall require that no covered computer may be exported or reexported to the People's Republic of China without the prior written approval of each of the designated officials.

(b) EXPORT OR REEXPORT WITHOUT UNANIMOUS APPROVAL- If any one of the designated officials does not approve of the export or reexport of a covered computer to the People's Republic of China, the computer may be exported or reexported to the People's Republic of China only pursuant to a license issued by the Secretary of Commerce under the export administration regulations of the Department of Commerce, and without regard to the licensing exceptions otherwise authorized under section 740.7 of title 15, Code of Federal Regulations, as in effect on June 10, 1997.

(c) DEADLINE FOR RESPONSE TO APPLICATION- Each designated official shall approve or disapprove in writing of the export or reexport of a covered computer to the People's Republic of China not later than 10 days after receipt by the United States of the application for the export or reexport of the computer.

(d) DEFINITIONS- In this section:

(1) COVERED COMPUTERS- The term 'covered computers' means the digital computers listed as 'eligible computers' in section 740.7(d)(2) of title 15, Code of Federal Regulations, as in effect on June 10, 1997.

(2) DESIGNATED OFFICIALS- The term 'designated officials' means the following:

(1) The Secretary of Commerce.

(2) The Secretary of Defense.

(3) The Secretary of Energy.

(4) The Secretary of State.

(5) The Director of the Arms Control and Disarmament Agency.

SEC. 307. DUAL-USE EXPORTS TO HONG KONG.

(a) IN GENERAL- Notwithstanding any other provision of law, the provisions of this section shall apply with respect to exports of covered items to Hong Kong.

(b) PRE-LICENSE VERIFICATIONS- The Secretary of State and the Secretary of Commerce shall not approve an export license application for the export of a covered item to Hong Kong if United States officials are denied an opportunity to conduct a pre-license verification with respect to the end-use of such covered item and the recipient of such item.

(c) POST-SHIPMENT VERIFICATION- If United States officials are denied the ability to a conduct post-shipment verification of the location, recipient, and end use of a covered item that has been exported to Hong Kong from the United States pursuant to an export license granted by the Secretary of State and the Secretary of Commerce, thereafter any application to export a covered item to Hong Kong shall be treated in the same manner as a request to export such item to the People's Republic of China.

(d) DIVERSION OF COVERED ITEMS- If the President, or any other official of the United States, obtains credible evidence that a covered item exported from the United States to Hong Kong on or after July 1, 1997, has been diverted--

(1) to the People's Republic of China;

(2) to an end use not authorized under the export control laws or regulations of the United States, or

(3) to a recipient, other than the recipient specified in the export license application, any application to export a covered item to Hong Kong that is pending or filed after the date on which such evidence is obtained shall be treated in the same manner as a request to export such item to the People's Republic of China.

(e) COVERED ITEM DEFINED- In this section, the term 'covered item' means the following:

(1) Any item on the United States Munitions List.

(2) Any item on the Commerce Control List of the Department of Commerce.

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